Key Takeaways
- • Blackstone (NYSE: BX) announced the final close of Blackstone Real Estate Partners X (BREP X) with $30.4 billion of total capital commitments, which the firm says is the largest real estate or private equity drawdown fund ever raised.
- • Blackstone's three opportunistic real estate strategies (Global, Asia, Europe) now hold a combined $50 billion of capital commitments.
- • Blackstone reports a 16% net IRR on over $100 billion of committed capital across its BREP global funds over more than 30 years, as of December 31, 2022.
- • Approximately 80% of the Blackstone Real Estate portfolio is concentrated in logistics, rental housing, hospitality, lab office and data centers, with exposure reduced in traditional office and malls.
- • Blackstone Real Estate manages $326 billion of investor capital, and co-heads Kathleen McCarthy and Ken Caplan framed current volatility and dislocation as an opportunity for high-conviction sector bets.
Summary
Blackstone (NYSE: BX) announced the final close of its latest global real estate fund, Blackstone Real Estate Partners X (BREP X), which has $30.4 billion of total capital commitments. According to the firm, this makes BREP X the largest real estate or private equity drawdown fund ever raised. With the close, Blackstone's three opportunistic real estate strategies, covering Global, Asia and Europe, now have $50 billion of combined capital commitments. Reuters independently reported the same $30.4 billion figure.
Blackstone said it has delivered a 16% net internal rate of return on more than $100 billion of committed capital across its BREP global funds over more than 30 years, a figure stated as of December 31, 2022. The firm said it shifted its portfolio ahead of changing macrotrends, moving away from assets facing headwinds such as traditional office and malls. Blackstone Real Estate says approximately 80% of its portfolio is now concentrated in logistics, rental housing, hospitality, lab office and data centers. The firm believes BREP X's scale and discretionary capital position it to pursue opportunities in these high-conviction sectors globally.
Kathleen McCarthy, Global Co-Head of Blackstone Real Estate, said the fundraise reflects the trust the firm has built with its limited partners and that Blackstone uses its insights and advantages to concentrate capital in investments poised for strong returns. Ken Caplan, the other Global Co-Head, said the current market is well suited to the firm's approach, noting that Blackstone has made some of its best investments during periods of volatility and dislocation. Caplan also pointed to a bifurcation in real estate performance that favors the firm's high-conviction themes, arguing that sector selection has become more critical.
Blackstone Real Estate, founded in 1991, has $326 billion of investor capital under management and describes itself as the largest owner of commercial real estate globally. Its Core+ business also serves income-focused individual investors through vehicles including Blackstone Real Estate Income Trust (BREIT), a U.S. non-listed REIT, and a European yield-oriented strategy. The unit also operates a real estate debt business that includes management of Blackstone Mortgage Trust (NYSE: BXMT).
Blackstone said it has delivered a 16% net internal rate of return on more than $100 billion of committed capital across its BREP global funds over more than 30 years, a figure stated as of December 31, 2022. The firm said it shifted its portfolio ahead of changing macrotrends, moving away from assets facing headwinds such as traditional office and malls. Blackstone Real Estate says approximately 80% of its portfolio is now concentrated in logistics, rental housing, hospitality, lab office and data centers. The firm believes BREP X's scale and discretionary capital position it to pursue opportunities in these high-conviction sectors globally.
Kathleen McCarthy, Global Co-Head of Blackstone Real Estate, said the fundraise reflects the trust the firm has built with its limited partners and that Blackstone uses its insights and advantages to concentrate capital in investments poised for strong returns. Ken Caplan, the other Global Co-Head, said the current market is well suited to the firm's approach, noting that Blackstone has made some of its best investments during periods of volatility and dislocation. Caplan also pointed to a bifurcation in real estate performance that favors the firm's high-conviction themes, arguing that sector selection has become more critical.
Blackstone Real Estate, founded in 1991, has $326 billion of investor capital under management and describes itself as the largest owner of commercial real estate globally. Its Core+ business also serves income-focused individual investors through vehicles including Blackstone Real Estate Income Trust (BREIT), a U.S. non-listed REIT, and a European yield-oriented strategy. The unit also operates a real estate debt business that includes management of Blackstone Mortgage Trust (NYSE: BXMT).
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